Staying Fresh:How Your Hotel Can Stand Out in a Crowded Marketplace

Existing hotels are facing a more competitive landscape than ever as major hotel chains have introduced a number of new

brands and distribution channels and new hotel groups are launching. But smart lodging operators are keeping their properties fresh by innovating in such areas as offering new types of work spaces for business travelers, designing creative meeting room configurations for groups and events, providing reliable and free Wi-Fi, adapting new technology such as beacons to reach guests on their mobile devices, and planning meaningful corporate social responsibility programs.

In the past year, most of the major hotel companies have

introduced a number of brands, many competing in the so-called

“lifestyle” category. Some of the bigger announcements have

come from Marriott, which launched its millennial-targeted Moxy

brand; Hyatt’s Hyatt Centric; the wellness-themed Even from IHG;

and Tommie from Commune Hotels & Resorts, which also targets

younger travelers at a lower price point. Hilton’s new Canopy

concept is a lifestyle brand that is focused on authentic experiences

and will emphasize values such as health and wellness alongside

local cultural experiences, for example, local beer tastings.

Launched in October, the brand plans to open in 11 cities,

including larger markets, such as Miami and Washington, D.C.,

as well as smaller but hipper destinations such as Nashville, Tenn.;

Portland, Ore.; and Ithaca, N.Y.

Another new brand is Best Western’s Vib (as in “vibrant”),

a contemporary, boutique lifestyle brand competing in the upper

midscale market. The pipeline includes properties in Miami, Los

Angeles, Chicago, and Seoul, with 10 other locations currently in

negotiations. “It’s a contemporary product intended for urban markets,

attractive to today’s connected traveler,” said Ron Pohl, Best Western’s

senior vice president, brand management & member services. “It

promotes Best Western as a progressive hotel brand, maintaining its

value proposition while providing state-of-the-industry experiences.”

BRAND EXPLOSION

“It [Vib] promotes Best Western as a progressive hotel brand, maintaining its value proposition while providing state-of-the-industry experiences.”— Ron Pohl, Best Western’s senior vice president,

brand management & member services

Competition is also coming from new brands. Virgin Hotels

opened its first hotel in January in Chicago, and Nashville is

coming next. Meanwhile, Début Hotel Group, a new company

from Hampshire Hotels Management, is planning to launch

lifestyle brands Augustus and Unscripted and expand its

Dream, Time, and Night brands.

A healthy overall marketplace may have emboldened

executives to develop new concepts. Key metrics indicate that

the financial health of the U.S. hotel industry is strong.

According to data from STR, Inc., U.S. occupancies increased

3.2% to 62.3% in February 2015 compared with February

2014, which was the highest February occupancy the

company has ever recorded.1

Average daily rates rose and revenue per available room also

climbed in year-over-year comparisons released in February.

The average daily rate hit $116.55, an increase of 4.7%, and

RevPAR grew to $72.60, up 8%. Markets such as Phoenix saw

double-digit increases in ADR and RevPAR in the same period,

according to the company.

Hoteliers have mixed feelings about the new competition.

In a recent SmartBrief poll of hotel professionals, about 32%

of respondents said that the new brands reflect what guests

are looking for in hotels today, while an equal number

believed they will remain niche properties and not compete

significantly with established brands. Some felt that their

properties already offer the kinds of amenities that these

brands say make them unique. Others worried that the

brands would make it harder to compete for guests.

Global companies are creating new so-called lifestyle brands such as Marriott’s Moxy, Hilton’s Canopy, and Even from IHG. What do you think of this trend?

31.8%

31.8%

19.1%

17.5%

1http://www.hotelnewsnow.com/article/15496/STR-US-hotel-performance-for-February-2015 Does not add to 100% due to rounding.

HOTELS AS THE NEW MOBILE OFFICEHotels are creating space for business travelers who need small

offices for short periods of time—for an afternoon brainstorming

session, videoconferencing or interview. These offerings go beyond

the business center by providing private locations. Available by the

hour, Westin’s Tangent, currently being rolled out nationally, offers

room for as many as four people. The spaces typically have a small

footprint of 260 square feet or less. The work space consists of

communal, interactive and individual work zones. They come

equipped with up-to-date digital technology, floor-to-ceiling white

boards, videoconferencing capabilities, as well as office supplies and

comforts such as light food and beverages. There are currently 49

Tangents in properties around the globe, with additional locations

slated to open this year at Westin Jekyll Island, Denver International

Airport and Nova Scotia.

Marriott’s Workspring concept is another example. Launched in

Redmond, Wash., at the Redmond Marriott Town Center, the space

was designed with the office furniture company Steelcase to cater

to small meetings. Features such as mobile furniture, ample natural

light and integrated technology are intended to make the space ideal

for brainstorming and other collaborative and creative sessions.

Healthy food and beverage options as well as office supplies round

out the amenities.

How Existing Brands Can Compete

While the new brands will introduce additional concepts, existing brands continue to innovate. With fresh ideas in their approach to their meeting

space, technology, and other offerings, these hotels can build guest loyalty.

The luxury boutique hotel WestHouse, which opened in Midtown

Manhattan in 2014, offers a different take on its meeting space.

The 175-room hotel has a clublike floor open to all guests, with casual

food and beverage offerings and residential-style design that includes

a central open kitchen with an expansive island. The seating areas

include a communal dining table, banquette seating, conversation

groups with couches and oversized ottomans, and writing desks for

business travelers. A private dining room seats eight guests and

comes equipped with audiovisual equipment, which makes it suitable

for use as a boardroom, said General Manager Karla Keskin. There’s

also attached outdoor space called the Terrace, which can be used

for private events. With interiors from Jeffrey Beers International,

the space is meant to feel luxurious yet comfortable and suited to

small business meetings or entertaining.

The trend seems to be catching on with hoteliers. SmartBrief’s poll

of hotel professionals found that 57.5% of respondents said they were

interested in the concept to bring in incremental business to boost

the bottom line. An additional 25.5% believed that offering such space

could lead to more and better meetings business from that client.

57.5%

25.5%

6.4%

10.6%

Some hotels are offering by-the-hour or other nontraditional meeting space. Would you try this at your property?

Does not add to 100% due to rounding.

RETHINKING MEETING AND EVENT SPACEAs corporate clients look beyond the basic beige ballroom,

hotels are delivering with a variety of new meeting spaces with

unconventional furnishings. Doug McLain, senior vice president of

global sales for the Palm Beach County Convention and Visitors

Bureau, has noted the trend in meeting planners looking to come

to Florida. He said that the conversation often starts with the

planner saying, “My CEO went to TED …” the wildly popular

big-ideas conference that is known for outside-the-box thinking.

The TED conference has creative setups, including a custom

theater for the main talks that permits multiple configurations.

When asked whether they have noticed changes in how meeting

planners want to use event space, more than half of respondents

reported that meeting planners have started looking for

nontraditional seating and setups. An additional 16.0% of

respondents said that while they haven’t had this particular

request, they still planned to start offering more options for

seating and setups in anticipation of changing needs.

Have you noticed changes in how meeting planners want to use your space?

32.0%

52.0%

16.0%

One example of a hotel that is innovating with its meeting and

event space is Four Seasons New York. In March, the property

unveiled Fifty7, a new meeting space in the former Bar and

L’Atelier Restaurant locations. Used for social and corporate

events, the 3,200-square-foot space can be separated by two

decorative panels to create three separate spaces or used

together, offering meeting planners flexibility. One truly unique

feature is a built-in show kitchen at one end of the room.

The activity in the kitchen can become part of the entertainment

at the event, or it can be covered. The new space helps the hotel

“anticipate our guests’ needs and hopefully go beyond,” said

General Manager Mehdi Eftekari.

Frenchman’s Reef & Morning Star Marriott Beach Resort,

a 468-room resort on St. Thomas in the U.S. Virgin Islands,

also is offering its guests new options in its meeting and

event space. The property attracts leisure and corporate

meetings, from incentive trips to executive retreats, and

Anthony Armas, the resort’s director of sales and marketing,

said he wants to be known for offering creative and

imaginative meeting environments.

An example of a newly configured setup the resort offers is a riff on

the theater-in-the-round concept. It places the stage in the center

of the room with couches and small tables instead of traditional

chairs and desk-style tables. They are still able to hang screens for

presentations without blocking the view of the speakers. “The

planner wanted to make a casual feeling to it so they could relax,”

Armas said. “They also felt people could interact more.”

Being in a Caribbean resort may give the property a more

casual room configuration. Armas acknowledged that

nontraditional arrangements may not be suited for every

group, which is why part of his staff’s role is to start by learning

about the goal of the meeting. “The prework is finding out

their objectives,” he said. “We don’t want to present this and

not know what they want to accomplish.”

Other ways of shaking up a traditional meeting include offering

food and beverage stations in the meeting room itself and

letting guests help themselves, as opposed to having a formal

coffee break.

“What everybody wants is options,” he said. “And that’s what we’re

doing. We want to promote the fact that we’re an experiential

resort. When you leave, you’ll think of the experiences.”

Another property rethinking its meeting and event space is the

JW Marriott Desert Springs Resort & Spa in Palm Desert, Calif.

During a $30 million renovation in 2014, the property took the

opportunity to carve out new spaces for events, according to

General Manager Ralph Scatena. One major change involved

investing in infrastructure in nontraditional event spaces, such as

the pool area, adding lighting, power, storage and refrigeration

space so those areas can be used for groups that want a different

setting. Another previously untapped space was a spa reception

area, which can be offered as a nighttime event space.

The resort also offers lounge-style seating in traditional

meeting rooms and other creative setups that may be

appealing for loyal clients who have been bringing groups to

the resort for more than a decade. To encourage planners to

experiment with the space, the resort uses social media to

market the possibilities. Scatena said he posts images of

creative setups on Instagram. Overall, the goal is to inspire

planners to do things differently. “Most meeting planners are

open to new ideas,” Scatena said. “It’s our responsibility to

make it fresh for them.”

“People really want to break away from standard classroom or half-moon setups,” he said. “Some people like to go outside the box. We’re really starting to stretch what we’re doing. It’s all revolving around the experience.” — Anthony Armas, director of sales and marketing,

Frenchman’s Reef & Morning Star Marriott Beach Resort

THE NEW WI-FI RULESPerhaps no hotel amenity has triggered as much discussion as Internet access,

with a years-long debate among hoteliers and guests over whether to offer free

Wi-Fi, how much to charge, and how to manage bandwidth as more guests arrive

with multiple devices. Initially, the trend seemed to be that budget and select-

service hotels offered free Wi-Fi while full-service and luxury hotels charged as

much as $50 a day for Internet access. But that trend is changing. The answer for

many hotels is switching to free Wi-Fi or a tiered service plan, or offering free

access to loyalty-program members. Another solution is offering faster

connections to guests who will pay a premium—likely business travelers who are

able to expense the charge.

Among the recent examples is Hyatt, which in February stopped charging for Wi-Fi

in its guest rooms and social spaces, regardless of loyalty-program status. It will

offer complimentary service upgrades for elite members. FRHI Hotels & Resorts,

the luxury-hotel management company that operates the Raffles, Fairmont and

Swissôtel brands, announced in December that it would offer complimentary

high-speed and wireless Internet access to members of its loyalty program.

With the trend for all hotels offering free or tiered Wi-Fi, SmartBrief asked hoteliers

if they planned to offer additional digital content to cater to the connected

traveler. The answer is yes, with 37.5% saying they were committed to having

digital content as a real point of differentiation for their hotels and an additional

31.3% reporting that they are considering it, particularly to reach business and

millennial travelers.

With the trend for all hotels offering free or tiered Wi-Fi, do you plan to offer additional digital content to cater to the digital traveler?

37.5%

31.3%

18.7%

12.5%

Does not add to 100% due to rounding.

MASTERING NEW TECHNOLOGYHotels are among the industries beginning

to explore beacon technology, a location-

based service that uses transmitters to

push notifications to mobile devices when

people walk by a certain area. The alerts

could include a welcome message as a

guest checks in or a dining offer as a guest

walks past a grab-and-go market in the

lobby. Guests opt-in to receive the alerts

by turning on the Bluetooth feature on

their smartphones or tablets and allowing

notifications.

A case study in large-scale deployment of

beacons is this year’s South by Southwest

festival in Austin, Texas, where planners

deployed more than 1,000 iBeacons,

Apple’s version of the technology.

Attendees using the festival’s app could

check into zones at SXSW venues and get

notifications about bands playing nearby

or people who also recently checked into

that zone. The idea is to facilitate networking

through immediate connections and alert

attendees to programming.

Hotels can use the technology in similar

ways for groups and events, but there also

are applications for individual travelers.

Early adopters in the hotel space include

The James Hotels at its locations in New

York and Chicago. Launched in the fall, the

program’s properties have integrated

beacons into their app for guest perks, such

as complimentary appetizers in its

restaurants. The James also uses its

beacons to share timely news, such as the

launch of the #jamespublicart project, an

original mural that its New York hotel

commissioned on the Sixth Avenue façade.

Guests were invited to engage and

participate with the mural, as well as share

selfies and other photos on social media

using the project’s hashtag.

“By utilizing the beacon technology, we are

able to engage with our guests at

opportune times to offer heightened,

personalized service, tailored perks and

incentives, or share unique details about

The James experience that are relevant to

the actual space they are in at the time,”

said Lisa Zandee, senior vice president of

brand management at The James Hotels.

Marriott is using iBeacons to market its

LocalPerks program, an offshoot of its

Rewards program that began in July.

The program sends offers to guests for

spa treatments, golf, and food and

beverage purchases.

More meeting planners are requesting help planning

team-building outings that benefit the community.

The trend is a legacy of the so-called AIG effect, in

which companies were criticized for traveling for

business events at luxury resorts in the midst of the financial

crisis. Hotels are responding by developing experiences that help

groups meet their goals.

Armas of Frenchman’s Reef said those planning meetings and

incentive trips regularly ask about the resort’s corporate social

responsibility programs and look for ways they can integrate

giving back to the local community in addition to team-building

offerings such as yoga on stand-up paddle boards and

nighttime kayaking. “Corporate social responsibility is an

important part of their programs,” he said. “Companies love it.”

As part of Marriott’s Spirit to Serve program, the resort chose to

focus its efforts on education, working with a university

hospitality program and a local high school that has a marine-

education program to teach students how to swim and boat.

In one activity, the hotel arranges for groups to repair boats by

patching holes and repainting them. The hotel also suggests

groups make a donation to the school’s program. Another

example of a program the hotel encourages is donation of

books and backpacks for children at back-to-school time. “We

encourage them to do things we’re participating in because it’s

easier,” Armas said. “We make the connection and see if it fits

with their strategy.”

But CSR programs appear to be underdeveloped at hotels.

SmartBrief’s recent poll of hotel professionals asked whether

hotels are offering corporate social responsibility or “giving

back” programs that groups can participate in. Nearly half of

hoteliers said it’s not a priority for them, while an additional

21.1% said their staff will help groups come up with ideas but

don’t offer anything themselves. 31.6% of respondents said

they offer several options for groups for programs on the

property and off-site. This may be an area where existing hotels

can create a point of differentiation and win group business.

For groups meeting at your hotel, do you offer corporate social responsibility or “giving back” programs that they can participate in?

31.6%

21.1%

47.4%

0%

Groups Want toGive Back

Does not add to 100% due to rounding.

Despite the explosion of new brands, existing hotels have plenty

of areas in which they can continue to surprise and delight guests, from business and leisure travelers to corporate and association groups. Innovation through technology, unique meeting space setups as well as offering programs for groups to “give back” can encourage guests to remain loyal.

Conclusion

SmartBrief is the industry leader in curated business news and custom content. Serving more than 5 million senior executives, thought leaders, and industry professionals, SmartBrief is the leading online publisher of targeted business news and information by industry. Our editorial experts have knowledge across industries and sectors, ensuring your content is relevant, timely, and high-quality. SmartBrief is ready to partner with you and your organization on all your content needs.

The Wall Street Journal continues to be one of the most influential and respected news publications. Winner of over 30 Pulitzer Prize awards and considered the gold standard of journalism, The Wall Street Journal is the industry leader delivering the most crucial news of the day, insightful opinion and fair-minded analysis. Today’s movers and shakers read The Wall Street Journal, including travelers staying at your properties. With surprisingly affordable options, The Wall Street Journal, available in both print and digital editions, keeps your guests up to date on everything from global news to sports, travel, fashion, and entertainment. To request further information, click here.